You can use a Kentucky resale certificate to buy goods or materials tax-free if you plan to resell them or use them as parts of products you will sell or lease. However, you must keep your resale certificates on file with each vendor you purchase from. You will be responsible for the applicable sales taxes if you are audited and can’t produce a valid certificate.
In most states, you must have a valid sales tax permit or resale certificate to purchase items for resale. The specific rules vary from state to state. You will generally need to fill out a form provided by the state and provide information about your business and the types of goods you plan to resell. You will also need to provide a copy of your sales tax permit or resale certificates to each vendor you plan to purchase from.
Kentucky is part of the Streamlined Sales and Use Tax Agreement, which makes it easier for businesses to comply with sales tax laws in multiple states. Buyers can use a multistate resale certificate that is accepted in all member states, or they can use the Kentucky resale exemption certificate. In either case, paying close attention to the details of each state’s resale certificate rules is important to avoid potential legal issues.
How Much is a Reseller Permit in Kentucky?
The cost of a Kentucky reseller permit varies depending on the type of business. Businesses that make 200 or more sales to Kentucky residents and those with more than $100,000 in gross receipts are required to have a license. This includes retailers, wholesalers, and even businesses that sell goods or services at flea markets and antique shows. Additionally, Amazon FBA sellers must be aware that they may have nexus in Kentucky and must pay sales tax on all inventory stored within the state.
You can download a single-state resale certificate for Kentucky or use the multi-state form offered by the Streamlined Sales Tax Governing Board. Both of these forms can be filled out online and are easily shareable.